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Sebi bars Bajoria from dealing in shares

The Securities and Exchange Board of India has debarred Calcutta-based jute baron Arun Bajoria from accessing the capital market and dealing in securities for a period of one year with immediate effect, on account 'attempted creation of evidence during the acquisition of shares of Bombay Dyeing'.

The capital market regulator also debarred other entities acting in concern with Bajoria including Mega Resources Ltd, Mega Stock Ltd, the Hooghly Mills Ltd, Pooja Bajoria, Mohini Bajoria, Lata Devi Bajoria and Meenakshi Jatia from accessing the capital market, and prevented them from dealing directly or indirectly in securities for a period of one year, a Sebi media release stated.

According to Sebi, since Bajoria's holding in Bombay Dyeing has already reduced to less than 5 per cent of its paid-up equity capital, no specific directions were issued to sell the shares acquired in violation of the regulations.

However, the market regulator has directed for appointing an adjudicating officer under Sebi Act, 1992 within 15 days of the passing of this order to hold an inquiry into the non-disclosure of fact of acquiring shares and adjudicate upon them penalty, if any, based on the merits of the case as per the specified procedure.

Sebi has noticed during the course of investigations that there was a deliberate attempt by Bajoria and other entities to create an evidence of submission of information about the holding in the largest company to Calcutta Stock Exchange.

''On the basis of circumstantial evidence and material on record, the contention of Bajoria that the said information was sent to BDMCL under certificate was not considered by Sebi as sufficient compliance or the disclosure under the regulation,'' the Sebi release pointed out.

According to Sebi, Bajoria alongwith persons acting in concert were required under the regulations to disclose within four days the aggregate of their holding to the target company (BDMCL) by March 20, 2000. However, he failed to do so.

UNI

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